The National Association of State Student Grant and Aid Programs (NASSGAP) recently polled its member state agencies to determine:

• how they use the information collected on the Free Application for Federal Student Aid (FAFSA);
• the potential impact of eliminating some FAFSA questions;
• the potential impact of replacing the current formula that is used to determine financial need (Expected Family Contribution - EFC) with one that requests less family financial resource data; and
• the viability of a "smart FAFSA" option that would seamlessly transition students from a FAFSA on the Web session to a state grant application.

Thirty seven (37) states responded to the survey. The responses indicate that proposals to limit the collection of family financial resource data would have significant financial, administrative, statutory and regulatory consequences to state need-based financial aid programs. This would result in many more students demonstrating financial need as well as increasing their level of financial need.

According to a press release issued by NASSGAP, "The use of the FAFSA as a gateway to state financial aid is critical. Recent proposals to replace the direct question of the applicant's state of residency could cause some applicants to apply for state financial aid to the wrong state. Losing state financial aid because a student was not asked directly what his state of legal residency is would be a poor outcome."

The survey responses identified as a viable approach to application simplification the development of an embedded "smart FAFSA" will enable each state to obtain the data needed to determine eligibility for their state grant program, and substantially reduce the number of questions students from any one state would need to answer. State responses indicated a high level of support for implementing this solution.

NASSGAP states it is "committed to working as a partner with the U.S. Department of Education, Congress, the IRS, colleges and other interested parties to develop an appropriate, simplified student financial aid application process and need analysis formula that would meet the needs of all partners." The survey report is available online.

Media Coverage

States' Cautions on Simplification Inside Higher Ed

Student-Aid Group Says Streamlined Fafsa Form Could Cost States The Chronicle of Higher Education

Posted 08/12/09 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web site questions or comments to Web@NASFAA.org.